Can Your Revenue Cycle Management Solution Keep Up

Shrinking reimbursements and increasingly complex regulations are squeezing the profits of clinical laboratories. As a result, many clinical laboratory leaders are being forced to consider their strategic options, including reorganizing, restructuring, merging and or otherwise consolidating with another laboratory, or selling. This means laboratory leaders need to be closely assessing their financial situation and maximizing their valuation to be prepared for either side of the merger and acquisition equation.

When considering acquiring or merging with another laboratory, or embarking on a joint venture, it is imperative to think through all of the operational implications. One such consideration is whether your revenue cycle management system is sophisticated enough to support your plan. For example, does your RCM system have the logic required to allow different definitions across different facilities or locations. Another consideration is whether your RCM system can support different brands, for example in physician and patient engagement portals and for reporting? In the near term, you’ll also want an RCM system that can potentially work with different banks for financial reporting.

If a lab acquires or merges with another lab that is on a different RCM platform, there can significant challenges associated with consolidating the two systems into one, not to mention the time and due diligence in selecting which platform to consolidate on. It is, however, important to complete that consolidation as quickly as possible to maximize revenue. The good news is that if one of the labs is already a XiFin RPM customer the process can be simplified and expedited.

Getting both labs consolidated onto the XiFin RPM platform will be the quickest way to increase cash flow and maximize return on investment (ROI). The XiFin cloud-based architecture makes it easy to add facilities and the next generation business intelligence provides visibility at all levels. Detailed data such as productivity, accessions being processed, etc., can be viewed at the individual location or lab level, as well as being consolidated and reported across the entire new organization.

In addition, the newest release of XiFin RPM, XiFin RPM 10 provides some new capabilities that will prove useful across a newly merged enterprise, such as:

• Improving Patient and Client Engagement: XiFin RPM 10 features a patient responsibility estimator and patient-friendly statements within its expanded portal capabilities. This enables diagnostic providers to help their patients better understand their out-of-pocket costs for ordered tests and provides a pre-payment option.
• Supporting Compliance Requirements: XiFin RPM 10 is the only diagnostic RCM system that delivers a FASB, GAAP and SOX compliant and GL-ready financial package.
• Increasing Visibility into Key Business Drivers: XiFin RPM 10 includes new business intelligence capabilities, such as data visualization and analytics to help labs providers better understand and make use of their data and financial information. This helps diagnostic providers benchmark their performance, enhance business decision-making, and negotiate better payor contracts.

To learn more about why is it so vital for your lab to understand and maximize its value, whether you are in buying or selling mode—or just preparing for what the future may hold—watch my webinar, “The Pathway to Driving Valuation for Your Laboratory: Your Roadmap to Achieving Success, and How to Sustain Growth Despite a Changing Lab Environment”, which will provide you with the essential insights you need to increase revenue and operating margin, and effectively maximize your laboratory’s value.